The Competition and Markets Authority (CMA) has given the provisional green light to Paypal’s £1.7 billion takeover of iZettle.
Last May the Swedish payments firm iZettle announced plans to go public, hoping to raise £168 million, but was bought just three weeks later by its largest industry competitor Paypal.
According to the CMA, if the Paypal had not bought iZettle, it could have grown to pose a serious threat to Paypal, which was run by Tesla founder Elon Musk back in 2001.
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In light of this the CMA launched an investigation into the merger, which was finalised in September, stating that it could drive up prices for customers and result in a lower quality of service.
Though the companies have remained separate since, the CMA has now given its provisional approval stating it does not believe the deal raises competition concerns.
The second and final verdict is de to be given in mid-June after the watchdog has collected views on its provisional findings.
“We are pleased the CMA has provisionally cleared our transaction,” Paypal’s president and chief executive Dan Schulman said.
“We look forward to adding iZettle’s products and services to our platform to help small businesses access even more affordable tools to run their shops and compete against the retail giants.”